A look at the February numbers for the real estate market in the four counties of Sacramento is encouraging, but I have reservations about excessive optimism. In the Sacramento Bee article, “Rising House Prices in the District”, it states: “After five straight months of falling prices in homes in Sacramento County in February, prices rose slightly, signaling a possible rebound in the most populated areas of the region. "
DataQuick, a research firm that monitors and reports real estate numbers, indicated that all four counties, Sacramento, Placer, Eldorado and Yolo, all saw an increase in the average price of homes sold in February.
Sales also increased slightly from January to 1,743 homes sold in the area. Although this number has increased since January, it remains 26% lower than in February 2005.
The inventory of houses on the market continued to grow. At the end of January, there were 9,267 homes on the market. The number in February increased to 9,870 people. A year ago, there were only 3,554 houses to choose from. The average number of days on the market for homes sold in February was 58 days compared with last year, when sales averaged 37 days.
In some local areas where I worked recently, the average price increase from last year was almost positive. The average cost of El Dorado Hills in February rose to $ 606,500, which is 9.3% more than last year, but since January. In Rocklin, postal codes 95677 and 95765, we saw a price increase of 34.4% and 7.9%, respectively, compared with last year, and both areas increased compared to last month in terms of price and volume. Three postal codes in Roseville. 95661, 95678 and 95747, all increased at an average price last year and since January. Sales declined by two figures from 2005 compared with January figures. Granite Bay, zip code 95748, reported 11 sales over last year and January. The average price paid in February for the Granite Bay home was $ 730,000, which is 3.2% less than a year ago, but $ 20,000 more than last month. For more details, take a look at the chart for a monthly zip code released by Sacramento Bee.
The January figures were “too early to tell” how the property market in Sacramento will evolve in 2006, and now we have February reports that are a bit more positive than we have seen in the past few months, but have not yet drawn a very clear a picture of what should happen this year. If these were only numbers, I would say that some local experts consider the correct prediction of a “return to normal” after the last five years of double-digit increases and trading wars on anything in the yard.
In the past few weeks, based on my personal business and conversations with the kolgogs, the couple, which we began to feel in mid-January and early February, was weakened in the last three weeks of winter weather. Rain and cold seem to keep shoppers inside, or at least not driving out of the bay. Right now, I don’t feel as bold as I did last month when I made three positive predictions. Despite the fact that I was right about the modest increase in the median price and the increase in sales, I was wrong in predicting a small decline in stocks of homes for sale. With the prediction for more rain, I do not think we will see February as the start of a new positive trend this year. I will predict when the rain will end, and the weather will be warmer here, there should be a good surge of activity when buyers start to go out and look again.
